CNBC Marathon examines a wide range of components that result in automobile possession within the U.S. being so costly, from auto loans to repairing your car.
A automobile loses about 10% of its worth as quickly because it’s pushed off the lot. And inside the first three years, that quantity goes as much as 50%. Depreciation — the speed at which that occurs — is a kind of numbers everybody within the automotive world thinks about together with shoppers, automakers and the large used automobile market, which made up someplace round 35.2 million in 2022 — in contrast with 13.8 million new vehicles.
More than 100 million Americans have an auto mortgage and auto mortgage debt within the U.S. is at a file excessive of $1.56 trillion. Between the Covid-19 pandemic, provide chain points, alleged predatory lending practices, inflation, and the Federal Reserve’s rate of interest hikes, getting an auto mortgage is getting more and more tough and expensive.
Auto restore prices have been rising for years, however not too long ago they’ve spiked. Experts say it is possible a mixture of components together with heavier, sooner and extra advanced automobiles, riskier driving conduct, new know-how, and labor and provide shortages. Repair store homeowners say they will’t discover sufficient technicians regardless of paying six-figure salaries. As know-how marches ahead, and fancy cutting-edge EVs fill the roads, shoppers hear horror tales about large restore payments. But insiders say there are causes to be optimistic.
Chapters:
00:00 Introduction
00:32 Why Cars Lose Their Value So Fast (Published December 2023)
13:18 Why Americans Are Falling Behind On Car Loans (Published August 2023)
30:30 Why Car Repairs Are Getting So Expensive (Published February 2024)
Produced by: Robert Ferris, Emily Lorsch
Edited by: Darren Geeter
Animation by: Christina Locopo, Jason Reginato, Alex Wood
Additional Camera by: Ryan Baker
Senior Managing Producer: Tala Hadavi
Additional Editing by: Jack Hillyer
Additional Footage: Getty Images, Rivian, Kia, Tesla, Insurance Institute for Highway Safety
Additional Sources: Experian, Bankrate, Federal Reserve Bank of New York
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Why Car Ownership Is Getting So Expensive | CNBC Marathon
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